Golar LNG JV Pens Gas Deal in Brazil
LNG vessel owner Golar LNG said on October 14 that an affiliate of its Hygo Energy Transition unit had signed a memorandum of understanding with Companhia de Gas do Para (GdP) on gas supplies in Brazil's Para state.
GdP has a monopoly over gas distribution in the region. Under the MoU, Hygo will supply gas and LNG to GdP using the Barcarena import terminal, due to be completed in the first half of 2022. The pair will also explore the local market's potential together.
"The MoU is an important step towards introducing natural gas to the Para state," GdP's commercial director Fabio Amorim said. "'The Barcarena LNG terminal will transform the fuel supply in the region, and our clients will have an affordable solution to reduce their environmental footprint. The large industries established in the region and the environment will be the most benefited from this initiative."
"Our commitment is to deliver cleaner and cheaper fuel to our clients," Golar LNG chairman Tor Olav Troim added. "GdP can count on Hygo’s full support in order to introduce natural gas and LNG in this great region in the first half of 2022. The expected LNG demand for this terminal piles up day after day."
Hygo estimates that the Barcarena terminal could serve up to 1.8mn metric tons/year of LNG to replace the use of LPG, diesel, fuel oil and coal in the region, Golar LNG said. The company also sees significant potential for gas in electricity generation, having secured 25-year power purchase agreements for a 605-MW plant. The station would take an additional 0.6mn mt/yr of LNG starting in January 2025 and would be configured to use a gas blend of up to 50% hydrogen.
Hygo is a joint venture formerly known as Golar Power between Golar LNG and US investment firm Stonepeak Infrastructure Partners. It was set up in 2016 to develop, own and operate integrated LNG-based transportation, downstream solutions and associated terminal and power generation infrastructure. It recently terminated a preliminary deal to supply LNG from the Barcarena terminal to Norsk Hydro's Alunorte alumina refinery.